getthereslowly
Returning Member

State Tax Underpayment Penalty due to Remote Working

Hello there,


I work remotely for a CA company from MI. My company withheld CA state tax but not MI state tax.
When I worked through my tax for 2021, I realized that I can get a refund for the tax withheld by CA. However, when I tried to pay the MI tax I owe, I noticed that there is a huge penalty I have to pay due to underpayment.


I am asking if there is a way to waive or reduce that penalty? Because I was actually withheld way more tax by CA and my company was just not able to withhold MI state tax for me.


Thanks a lot!